Russia is reportedly willing to build connectivity, capital markets, and financial infrastructure with India, similar to the model built over decades with Europe. According to Russian aluminium tycoon Oleg Deripaska, this relation will benefit both the countries, accentuating bilateral trade to $120-150 billion over the next decade.
Over the several decades, Russia has been having trade relations with Europe, achieving annual bilateral trade from 750 billion to 1 trillion, said the founder of aluminium giant Rusal.
Prior to this economic cooperation, Russia and Europe were involved in a 12-year integration process, wherein the countries built common transport, financial and debt infrastructure, and harmonised trade procedures.
Deripaska further said in a statement that the two countries for long enjoyed friendly relations in terms of common culture, tourism and education, and now required to expand economic relations.
Deripaska believes a similar kind of infrastructure like that of Russia and Europe is needed to build in order to make progress in economic relations. So, the country is counting on India, with which it could set up direct trade agreements, develop new logistics routes, and speed up and digitalise customs procedures, giving both sides an access to debt and capital markets.
This, being a complex process, requires substantial efforts from both countries’ governments and private sectors. “If we act fast, we can achieve a lot in the next four years. I believe Russia-India trade can reach $120-150 billion in the next decade,” said Deripaska.
The website of the Indian embassy in Russia reveals bilateral trade during FY2021 ended March 31 totalled $8.1 billion, according to Indian figures, while based on Russian data was 9.31 billion.
According to Industrialists, Russian companies will begin to localise their production sites in India, as a substitute measure since certain imports to Russia are restricted. Deripaska opined, “Localising production sites in India and supplying them with Russian raw materials in return for a part of the ready-made products, on the other hand, would make more sense.”
As per the report, Russia and India have already started expanding their cooperation in communications, healthcare, pharmaceuticals and tourism.
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